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USD/JPY Fundamental Analysis December 14, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 00:00 UTC

Analysis and Recommendation: The USD/JPY continues to climb seeing the pair hit 83.64 a multi month high. With elections scheduled for December 16th,

USD/JPY Fundamental Analysis December 14, 2012, Forecast

USD/JPY Fundamental Analysis December 14, 2012, Forecast
USD/JPY Fundamental Analysis December 14, 2012, Forecast
Analysis and Recommendation:

The USD/JPY continues to climb seeing the pair hit 83.64 a multi month high. With elections scheduled for December 16th, political uncertainty continues to weigh on the yen. Also additional stimulus from the Bank of Japan weakens the currency. The decision by the FOMC to increase stimulus and bond buying programs lowered the US dollar against its partners except for the JPY.

The Fed meeting comes ahead of Japan’s general election on Dec. 16, which is expected to see the Liberal Democrat Party regain power, and reinstall Shinzo Abe as prime minister. The LDP has been frank its desire to weaken the yen as it deals with rising energy prices and dwindling exports. Ultimately the yen will weaken, and weaken by quite a bit, but it’s not because there is a new government; it will be because the current account has gone from a very strong surplus to negligible over the last year or so.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data December 13, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 13

 

KRW

 

 

South Korean Interest Rate Decision 

2.75%

 

2.75% 

 

2.75% 

   

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Forecast

Previous

Dec. 14

04:30

JPY

Industrial Production (MoM) 

 

1.8%

Government Bond Auction

Date Time Country 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK 

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